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tv   Boom Bust  RT  August 14, 2014 4:29pm-5:01pm EDT

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i'd already teen years we have a different approach. because the news of the world just is not this funny i'm not like damnit i'm not. good. at. something you guys have to the jokes will handle them except that i've got to. be martin the stories we cover here we're not going to hear any right other big
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story but i have to have a life and talk there's a reason they don't want you to know about me that i am born and raised that way. now let's break the set. hello there i'm marinating this is boom bust and these are some of the stories that we're tracking for you today. we have one oily tech show in store for you today and we're starting off in mexico where the fifteenth largest economy in the world is opening up its oil and gas resources to the private market so what does this mean for state run oil company pemex we look into it coming right up and senior fellow at the post carbon institute richard heinberg sets out with me earlier today to talk about the latest news coming out of mexico and what it means for oil production and edward harrison is back to get back to the wonderful mr harris that is sitting down with these big deal to talk that you won't want to miss
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a moment and it all starts right now. with. our lead story today mexican oil wednesday mexican president and rick a pen yet yet to sign a historic reform bill that will allow foreign companies to access or oil and gas fields in the country the reform is meant to make mexico's oil industry more competitive and drive economic growth in the world's fifteenth war just economy this is a store bill was approved back in december of twenty thirteen but wasn't signed until this week the reform ends a seventy five year old monopoly that barred foreign participation in the market since nine hundred thirty eight pemex mexico's state owned oil giant has held
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a monopoly over oil and gas this reform aims to make pemex more efficient through cooperation and joint ventures with foreign players now the new law doesn't break just. the monopoly on foreign companies but now domestic private oil and gas companies will be able to operate in direct competition with pemex before private companies were only allowed to work for pemex under service contracts now penya nieto promised that the country's oil output will increase at least twenty percent to three million barrels per day by twenty eight teen mexico is the ninth largest producer of crude oil in the world and the president expressed his desire for mexico to remain an oil exporter not in oil importer pemex lost its position as a lot of america's number one oil producer a few years back to brazil's semipublic multinational energy corporation.
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it will be allowed to bid on four fifths of the country's potential resources so basically pemex will be entering this new more competitive mexican oil market with a considerable considerable edge over the competition in fact mexico's government has said that pemex will be allowed to keep eighty three percent of the country's proven and probable reserves which include current oil fields and discoveries awaiting development so obviously officials hope that the bidding which is slated to start as soon as next year will spark an energy boom the most promising and appealing oil reserves in mexico however are in the deep waters off the gulf of mexico and currently pemex has no deep water production in the gulf were other major oil companies have been very successful on the u.s. side of the gulf so bottom line mexico's state ownership of its natural resources has been preserved under its constitution since the late one nine hundred thirty s.
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and with crumbling infrastructure bureaucracy and corruption business in mexico doesn't come problem free but here's the progress when us went to mexico. to explore the news coming out of mexico's decision to grant foreign companies access to their oil and gas fields i sat down with richard heinberg earlier today heinberg is a senior fellow at the post carbon institute and an expert on energy and oil i wanted to get his take on this big news from mexico and what it could mean for that country and the rest of the world take a look at what he had to say. well you know certainly there are more oil fields that are yet to be exploited. just to reach will cheaply but you have to
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remember in the u.s. through the. well from mexico. the energy information administration of the u.s. department of energy for is forecasting a production from that area to decline over the next several years so if if the us sector is not doing that well i don't see any reason to suppose that the mexican center is going to suddenly blossom now it's clear that natural resources are becoming a big issue as china and some other emerging markets they increase their oil consumption and in fact argentina for example have acted that they expropriated their oil resources so how do you see the resource nationalism playing out in south america. well it's that's been the trend recently and i think those will see more of that as as time goes on of course resource nationalism because of those ways over the short term it increases.
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revenues to governments but it also tends to shut out international investment and access to expertise from. mostly u.s. based companies so. it's you know it makes the situation even even more complicated this is the situation we're seeing in the in iraq right now is sort of emblematic of that with the kurdish region know that it produces about one hundred thousand barrels of oil per day but the giant kirkuk oil field borders the the kurdish region it produces over one hundred twenty thousand barrels of oil per day so. the kurds have recently more or less annexed the kirkuk field more than doubling their their oil production most of which they they put into trucks and send north to turkey so they they are are getting more revenue from oil
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but they need that revenue in order to fight off the incursions from isis so you know this company is. countries. both need more revenue from oil to make up for an increase in cost of producing oil and defending access to oil and resource nationalism can give temporary access to. more revenues but it also you know it cuts the other way as well richard we spoke a few months ago to get a handle around the topic of peak oil and i want to continue that discussion with you by getting your thoughts about today's oil related topics and it seems like major geopolitical conflicts everywhere almost right now they have some element of natural resource conflict attached to them so why is that. well this is nothing new i mean geopolitics is ultimately about control of resources and
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in the modern industrial world the most important of those resources are energy resources and primarily fossil fuels so you know we've had oil wars really going back in in some ways at least two of which first rules were and maybe even before so what we're seeing now is just a continuation of that as the low hanging fruit of easily accessible and high quality hungry carbon resources are used in the competition just gets more intense and that's what we're seeing. now iraq the worry is that if iraqi oil fields fall into the hands of isis that's everyone's big concern so in terms of peak oil oil supply and oil price does iraq really matter. well of course of iraq's oil production currently is about three million barrels a day. but there's that. the evident capacity to increase
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that something and all of the major players including the international energy agency u.s. department of energy are or are forecasting the creases of. oil production or excuse me iraqi oil production really counting on that in order to make up for shortfalls from from other countries so if iraq definitely does matter and what we're saying right now of course with with isis upsetting the apple cart is that is of concern to all players and that's an think that's main reason why the u.s. has now changed direction and in committed weaponry airstrikes if not yet ground troops to to that region again richard what about russia that's a big topic political today given economic sanctions in the conflict in ukraine and now american politicians want to undercut putin's greatest geopolitical asset oil
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and gas so can they do that. well yes to a certain degree we have to see this in context russian oil production which has been. mostly the top producer russia's been mostly top producer in the world for the last few years sometimes. for a month or two saudi arabia overtakes russia but it's mostly done russian number one slot russia's oil production is about to head into decline. this is the this is the second peak in russian oil production first was back in the days of the soviet union back in the late one nine hundred eighty s. . this is a lower peak it's a couple of million barrels a day lower than the peak achieved in the one nine hundred eighty s. but again it's it's it's the same old story low hanging fruit are gone there's definitely more oil to be produced but the rate of production currently can't be
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sustained much longer so russia is very interested in developing unconventional sources of oil such as title real or some such sometimes called shale oil. offshore oil deepwater oil. and so on and what the u.s. has done with its sanctions is it's denied russia access to u.s. technical capability that would have aided russia in accessing those sources of oil . now the u.s. is the center of the world oil industry and in terms of technology companies like schlumberger and however are headquartered in the united states the u.s. has more oil engineers petroleum geologists than any other country and of course that's because the u.s. has has put more time and and money into developing this kind of expertise than any other country in world. that was richard heinberg senior fellow at the post carbon
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institute. time now for a very quick break but stick around because when we return dan beer is on the show now dan was the keynote speaker at this year's black hat cyber security conference in las vegas and he's giving us his take on the structural security of our financial markets along with his thoughts on privacy and the n.s.a. the family get together and in today's big deal edward harris and i are discussing the latest and greatest tech stories from this past week plus remember you can see all segments featured in today's show on you tube and you tube dot com plus the best are to keep an eye on hulu at hulu dot com slash. now before we go here a look at some near closing numbers of the bell.
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washington. is a. prophecy we're going to do that actually doesn't do too much for our revenue line tech agriculture giant song seventy six year old american the studio fallout do you think this is going to the create or the cia do you think this is what's triggering a race for so long to stay calm but it's also the largest debtor nation to breaking the set is mostly about alternatives to the status quo when they get real. working toward the american dream the next they were just trying to survive this time for americans and lawmakers are more to wake up and start talking about the real causes of.
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i've read and i know how to. play. by the media like a bunch of. like. i've been aren't financial system is rigged by a bunch of greedy. like. as in there's more than just what. i'm the rest of the city is quite carefully worded as. well now chances are it's happened to you someone hacked into one or more of your electronic devices e-mail or social media accounts and it's definitely not just happening to regular people big companies are also victim and it seems that hackers are always one step ahead of those trying to stop them now next up is another one
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of my interviews from the black hat conference with computer security analyst and expert dan gere we discussed privacy in the n.s.a. and dan gave me his take on the structural security of our financial markets i first asked him what he believes to be the biggest threat to the cyber security world today here's what he had to say. we so rarely. so rarely know what they are into or after were damaged when they. the the the top issue it seemed for security engineering for me it's always been no silent failure but we have a lot of that and so when you say what's the big issue i mean part of it is. course a big issue well i can say was to be sure that i know about what may be hard to do is to be absolutely correct about here's what the big issue and i think we're and one of the things that i was covering in sort of a mentor way with all the comments this morning was that. we are frequently right
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now most focused on issues of roughly speaking confidentiality data breach privacy etc etc you know that that might all be. collected on the word confidentiality going forward it could well be that we inadvertently or maybe just decided oh well give up on confidentiality but integrity. is in the big issue and with. medical records i'd really rather that the average person not modify mine and and. and electronic health records already sell for more on the black market than credit card records do so it's not as if this isn't something for which the first glimmers can be seen or for that matter the integrity of of configuration for all the things that we rely on being automatic you know i spoke a little bit about liability but part of that has to do with the do you or do nots assume things go badly and if so do you have a way to cope with that. it might well be that integrity is the new thing so.
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if you were to ask me what if i was starting from scratch today and i didn't have a job or a or anything else or i was trying to start a firm or something i might actually. say that worried about data integrity. is a right now it's still a green field is there anything we can say about that and it might be just limited to the smart grid or it might just be limited to electronic health records or it might just be limited to. the reason i spoke of it is tim tim o'reilly this is no slouch but his argument for algorithmic regulation might be the place want to look because all those are based on i trust the data and then i do x. . can you trust the data you know it's interesting you say it's integrity but it's almost dignity and privacy if you have nothing to hide then why feel you have to hide something it's a book by an academic named somewhat of
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a soil of the earth is it daniel so long for the title of it is nothing to hide and which he explicitly talks about this you know i live a good life i have nothing to hide well that's not necessarily true. and it's not necessarily true in any means an academic lawyer but it's worth it's worth taking a look at now we spoke last week with bruce schneier and he calls the relationship between the n.s.a. and private data collection organizations a public private surveillance partnership so is he right and if so how do we can about this. it seems to me that when you're in a situation. such as united states not all countries were such as united states where ninety percent or ninety five percent or something like that of the critical infrastructure is owned by the private sector. and you're worried about cyber questions in a broad sense what do you do about it and the answer is whether they want to or not you deputize the private companies to be part of some branch of government one
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could argue that the whole warrantless wiretapping thing was the unwilling deputizing of various providers and there was certainly a time in the west when you couldn't say no to the sheriff who showed up and said you're part of the posse you know get on your horse i mean it's sort of the same thing this this idea that you're going to be deputized you're now part of enforcement. you have to act like you volunteered even if we did it by telling you and let's go so bruce is right in that regard it is public private but for the reasons that i think is not quite how bruce put it and that is the it's only natural to say if we need x. and x. currently is owned by the private sector we will simply do something now in wartime second world war we nationalize industries we're not doing that now but we might arguably be doing something that is of the same spirit now. how do you protect yourself against that well there's you heard in my talk and you will read me. and
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the longer transcript. as a bit of a skeptic i admit to being a skeptic. and as someone who's a professional paranoid and has been for a long time so of course i've seen i've seen worse things than you should ordinarily see it's not like i'm a policeman working homicide you know which changes your view of the world and so forth but my view of the world is changed to a degree by experience. i've come to conclude that. the nature of trust how you would define trust is trust us when. i trust something when i have affective recourse. now i trust members of my family because in your family you always have at some level affective recourse yeah you know your uncle so and so and all that but you have effective recourse at some level. but when his data collected by others the question is do you have effective recourse and if i don't i'd rather it wasn't collected and if i if i think that the data is being collected that i
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don't know about which of course is in many ways the real issue here and that is that technology is making what was once an observable into observable thereby changing the definition of in public and substantial ways what is in public when i can read your handwriting from orbit what is in public when i can do through the wall imaging what is in public when everything you have that has a radio is advertising uniquely that it's you and so forth i mean what. is the observability aspect the changes i think the core of the core definition of what is in public well if that is true and what is him public is fair game for observation and recording it may well be that what i want to do is make less data available and not by contrast say that i want to campaign for better data handling laws and i want to campaign for in some sense regulation about how data is used i would prefer
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that it not be exist now that's just me obviously i'm getting older and it's easier for me to opt out of things it's it's emotionally easier for me to opt out of things than it would be for someone to say for example is three years out of college for whom if you don't plan social networks you don't have a life. that was computer security analyst dan here time now for today's big deal. mr edward harrison we missed him but he's back today and we're discussing tech some of the tech tech tech here the most recent tech stories from the past week let's go over the internet first up a washington post reported record high traffic just one month after adding a digital stuff so bad word is this based on what he does vaster now i think it's
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a great it's a great story about how you know disintermediation where we want to call it but basically these newspapers have been getting crushed by the platform chains you have all this fix infrastructure cost and we're moving to the. you know they can't support that infrastructure but the post is the way to increase their traffic and hopefully increase their revenue base but they're starting from a smaller base and it's early days of that level so i think that the jury's still out how long this is going to last but they've got a good ball now what's going on with john mcafee this is crazy i mean his story is better than any crime novel i've read this just tell me what's going on because you were black and he he was out there i guess at the desk we didn't get to run into him a blackout but he has some crazy stuff going on with the police essentially he says that you know he had this big fine from the government which is a tactic i can't truly i can't keep up with it because it's so bonkers he had an x.
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lover come after him and shoot at him anyway instead of paying the. police government he gave them computers that had some sort of spyware on them that then gave him all this information about them and he says that they're run by the civil lower cartel and this crazy crazy stuff again better than any crime novel i've read this so what do you think they're do you think that he's kind of off the radar. a little bit you know because i read some of the stuff that he had to defcon and it will he said basically i don't know anything about technology. so why was he there what was he saying there and go back to that so i think he is a little bit of cold to put off you know. maybe knows more than all of us now of course let's get on to this more rival news coming out of transportation apps the rivals over and left both companies recently announced their carpool future and what's your take on this so you know a little bit. valuation of the eighteen billion dollars but what i do think is i
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think it's a great i think it's moving forward the whole space and it's another again a mediation alternately the internet is all about price discovery and that's going to bring lower prices to people and that's what we're seeing here with the lift this whole competition is not just between you know taxes and transportation aspirates when those two so what you want to see is prices come down more competition means lower prices and that means better things for for us as consumers and i've said i was in new york on monday and tuesday doing a show there and one of the fascinating things that they had they have a delivery and sort of a messenger service five dollars to get something come across town on a bicycle and this is like you're saying they're opening up into larger markets they're no longer just taking you as a person they're taking your stuff to and from places that i mean for five dollars that was a deal and that's where their valuation bump up could come from but i'm still
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skeptical that that's just five bucks that kind of know what's going on with yahoo and that's what you hear that i know that was that was a good story about how the deal got i actually worked right before that about ten years ago and the people that she had coming over there like toby koppel's. and so forth and jerry yang they went over. they would realize that they weren't doing it the right way in china and that they therefore needed to partner with and even though they ended up partnering with a company even there it wasn't enough and so they decided to take the hands off sort of a buffet kind of approach just by the company it's a portfolio company we let them do what they do and that is the only this is what i thought it was very interesting the only u.s. technology companies in the internet. so none of those other companies. none of them have actually really had a success in china yahoo is the only one now we'll have time for one more but i
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want to ask about this edward snowden recently gave an interview wired magazine which was pretty interesting stephanie claim that the n.s.a. has a top secret program called monster mind. but what are we supposed to make of this supposed to make it with the big thing is that in order to work which is in order to find out that you're hitting the u.s. you have to actually in order to counteract that which is what this is all about you have to filter all the traffic all the traffic has to go through the n.s.a. they have to filter it in these bots and that's the only way that it's going to work basically they have a. filter of all traffic coming from these revelations keep going he said there's more to come. that's all for now but we love hearing from you please check out our facebook page facebook dot com. please tweet us at edward and from all of us here thank you for watching we'll see you next time.
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that nixon decided to go. there's the gold window and turn the monetary system into a painting on a dollar bill and exchange for this deal with the devil the u.s. economy would never say we were told we could lead lives to balance currency without cost. i've got news for you the portrait of uncle sam has been hit in the basement of fort knox by the barbarous relic called gold and that portrait of uncle sam my dear people chose a tire maker and ugly old dude from monetary depository fiscal murder empires of dead and banking immorality.
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crosstalk rules in effect and you can jump in anytime you want. the stories we cover here we're not going to hear any right other big story the
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extra headlines same time there's a reason they don't want international airport reset. now let's break the set. coming up on our tear gas rubber bullets and on rust a rabs for the fifth night in ferguson missouri we have extensive coverage on the protests it all began when an unarmed teen was shot and killed by police. it's thursday august fourteenth five pm in washington d.c. i'm here i'm david and you're watching r.t. america we begin today with the latest out of ferguson.


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